Google to drive wedge into Uber’s car ambitions?

The world of high-tech and urban transportation was shaken up when a Bloomberg report alleged the biggest investor in the Uber taxi service – Google – was aggressively pulling out to pursue its own taxi dreams. A cryptic tweet from Google followed.

Uber has faced a number of peculiar challenges since its
inception, despite the overwhelming ease of use and the
popularity the ride-sharing service has garnered. The company,
with branches in over 200 cities worldwide, just couldn’t seem to
get a break – be it from the recent embarrassments of its drivers
being complete weirdoes or rapists, to accusations of its
aggressive expansion and skirting of local laws – there’s plenty
to pick from.

But for a brief moment on February 3, many might have thought
that a truly strong blow was dealt to the smartphone taxi app:
Google – its biggest backer, having donated $258 million in 2013
– was pulling out. That’s according to a Bloomberg exclusive, which apparently misfired.

The news source alleged that Google Venture, the investor, had
had enough of Uber, and as it prepared to launch its driverless
car technology, it was also preparing to branch off into its own
ride-sharing market. According to a source close to the Uber
board of directors, Google’s chief legal officer David Drummond
informed Uber of this. One thing allegedly led to another, and
Uber was rumored to be considering kicking Drummond of its own
board of directors.

Then there were reportedly screenshots of Google’s alleged new
service and talk of private meetings, as well as the quite real
announcement that Uber was teaming up with Carnegie Mellon
University to build a new facility and research its very own
driverless car technology – which surfaced on the same day as the
mysterious allegations of the split from Google.

"As a global leader in urban transportation, we have the
unique opportunity to invest in leading edge technologies to
enable the safe and efficient movement of people and things at
giant scale," the press release read.

"This collaboration and the creation of the Uber Advanced
Technologies Center represent an important investment in building
for the long term of Uber."

Whatever happens to the company, it’s still worth over $40
billion. The persisting problems relate mainly to competitors and
allegations of expansionist policies and other legal matters.
Some, according to AFP, have called it a “disruptive”
economic force, with many in the 54 countries where it operates
seeking to shut it down on various grounds.

The French decided to ban Uber’s smartphone app in 2015, although
the service would still be operational. The country’s cabbies
complain the service represents unfair competition, especially
when it comes to paying taxes, as well as Uber providing cheaper
fares.